12 October,2010 10:42 AM IST | | Debarati Palit
Tax hike in offing for nightspots that haveu00a0 music and dance; owners to fight move
Musical shows at nightclubs might just get a tad more expensive.u00a0
The state government will henceforth charge nightclubs that have both music and dance Rs 45,000 extra every month in tax, said sources.
Though nightclubs have not received an official letter yet, the news has already created a flutter in restaurant circles.
Ganesh Shetty, president, Restaurant and Hotel Association of Pune, confirmed the development.
"We haven't received any official letter but orally we have been informed. We will meet the collector and take a stand against it," said Shetty.
The owner of a pub in Koregaon Park called the hike an unfair decision.
"We do not earn enough to pay such a hefty tax," said the pub owner, requesting anonymity. "We just have four small events a months and it is unfair to take Rs 45,000 every month. If a decision is not taken in our favour, we might take the help of the law."
Neil Shah, owner of Curve, added that associations from Mumbai and the city would fight a case together once a formal letter was sent.
"We don't even have cover charges or entry. Whatever we earn is from alcohol and food," said Shah. "Where do we get the money from?"
Mumbai nightclubs have to pay around Rs 90,000, which also has been opposed by most nightclubs. The owners are now waiting for an official letter to come, after which they will file a case in court.
District Collector Chandrakant Dalvi said though the collectorate had not received the letter hiking tax yet, once it received the letter the restaurant association would be informed.
"I am out of town currently, but as of last month we had not received the letter," said Dalvi.